The EIU view

On January 21st the new Swedish government took office, four months after the September 2018 election. It comprises a centre-left coalition between the Social Democratic Party and the Green Party. Momentum in the economy has been strong since 2014 and will probably not be affected by political instability. Growth will remain firm, but is likely to slow on the back of falling residential investment.

Extreme weather hits Scandinavian countries
The government has called for emergency assistance from other EU countries. Heatwaves in May-July are likely to have negative short- and medium-term effects on the economy.